POST UTME BSU 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm wants to maximize its revenue, what is the optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 2
The concept of scarcity in economics implies that the wants and needs of individuals are unlimited, but the resources available to satisfy these wants and needs are limited. Which of the following best describes the opportunity \cost of a choice?
A. The value of the next best alternative that is given up when a choice is made.
B. The \cost of producing a good or service.
C. The benefit of a choice.
D. The profit made from a choice.
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's techno\logy is such that L = 4K, find the value of K that maximizes output.
A. K = 16
B. K = 32
C. K = 64
D. K = 128
Question 4
A firm's demand curve is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply curve is given by Qs = 2P - 50. Find the equilibrium price and quantity.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 5
A consumer's indifference curve is downward sloping. What is the implication of this for the consumer's utility function?
A. The consumer's utility function is concave.
B. The consumer's utility function is convex.
C. The consumer's utility function is linear.
D. The consumer's utility function is quadratic.
Question 6
A consumer's utility function is given by ( U(x,y) = 2x + 3y ), where ( x ) and ( y ) are the quantities of two goods consumed. If the consumer's budget constraint is \( 2x + 3y = 12 \), find the value of ( x ) that maximizes the consumer's utility.
A. 2
B. 4
C. 6
D. 8
Question 7
A consumer's demand function for a good is given by ( Q(p) = 100 - 2p ), where ( p ) is the price of the good. If the consumer's income is \( I = 100 \), find the value of ( p ) at which the consumer's demand is maximized.
A. 20
B. 30
C. 40
D. 50
Question 8
A government imposes a tax of ₦10 per unit on a product. The demand for the product is given by Qd = 100 - 2P and the supply is given by Qs = 2P - 50. Find the new equilibrium price and quantity.
A. ₦60, 120 units
B. ₦80, 80 units
C. ₦40, 160 units
D. ₦120, 40 units
Question 9
A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?
A. The money supply will increase.
B. The money supply will decrease.
C. The money supply will remain unchanged.
D. The money supply will be unaffected.
Question 10
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.
A. P = 40, Q = 30
B. P = 50, Q = 20
C. P = 60, Q = 10
D. P = 70, Q = 5
Question 11
A country's GDP is given by GDP = C + I + G + \( X - M \). If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦400 billion, and imports are ₦200 billion, find the country's GDP.
A. ₦1.5 trillion
B. ₦1.6 trillion
C. ₦1.7 trillion
D. ₦1.8 trillion
Question 12
A monopolist faces a demand curve given by Qd = 100 - 2P and a marginal revenue curve given by MR = 20 - 2Q. Find the price and quantity at which the monopolist maximizes profit.
A. ₦50, 100 units
B. ₦75, 75 units
C. ₦25, 150 units
D. ₦100, 50 units
Question 13
A country's supply function is given by Q = 2P + 50, where Q is quantity supplied and P is price. If the country's demand function is Q = 100 - 2P, what is the equilibrium price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 14
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the optimal bundle of x and y.
A. x = 80, y = 60
B. x = 70, y = 70
C. x = 60, y = 80
D. x = 50, y = 90
Question 15
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the supply of the product is given by the equation Qs = 2P - 50, where Qs is the quantity supplied, find the equilibrium price and quantity.
A. ₦50, 150 units
B. ₦75, 100 units
C. ₦25, 200 units
D. ₦100, 50 units

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